Macquarie: Ringgit crackdown saps volatility, deters investors

Clearer picture: A money changer worker counts US dollar notes for a customer in Kuala Lumpur. CIMB Research expects the ringgit

KUALA LUMPUR: Malaysia’s crackdown on currency speculators has come at a cost. While it has successfully reduced ringgit volatility, it is threatening to discourage overseas investors.

The central bank’s steps to curb trading in offshore non-deliverable forwards (NDFs) last year made it harder for global funds to hedge their exposure to Malaysia, according to Macquarie Bank Ltd.